Income Taxes |
6 Months Ended |
|---|---|
Jun. 30, 2026 | |
| Income Taxes | |
| Income Taxes | Note 18 - Income Taxes The Company files income tax returns in the U.S. federal jurisdiction and various state jurisdictions. Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. Where applicable, the Company records a valuation allowance to reduce any deferred tax assets that it determines will not be realizable in the future. The Company recognizes the benefit of an uncertain tax position that it has taken or expects to take on income tax returns it files if such tax position is more likely than not to be sustained on examination by the taxing authorities, based on the technical merits of the position. These tax benefits are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate resolution. Although the Company believes that it has adequately reserved for uncertain tax positions (including interest and penalties), it can provide no assurance that the final tax outcome of these matters will not be materially different. The Company makes adjustments to these reserves in accordance with the income tax accounting guidance when facts and circumstances change, such as the closing of a tax audit or the refinement of an estimate. To the extent that the final tax outcome of these matters is different than the amounts recorded, such differences will affect the provision for income taxes in the period in which such determination is made and could have a material impact on the Company’s financial condition and operating results. Carryforward attributes that were generated in tax years prior to those that remain open for examination may still be adjusted by relevant tax authorities upon examination if they either have been, or will be, used in a future period. In applying the estimated annual effective tax rate approach prescribed under ASC 740-270, the Company recognized an income tax benefit of approximately $0.4 million for the six months ended June 30, 2026. For the three months ended June 30, 2026, the Company recognized an income tax benefit of approximately . The interim tax provision reflects the estimated annual effective tax rate adjusted for discrete items, including foreign tax attributes and research and development tax credits. No income tax benefit or expense was recognized for the comparable three-month period in 2025. The Company may incur current income tax liabilities in individual foreign, state or local jurisdictions notwithstanding a consolidated pre-tax loss because taxable income and loss are determined separately by legal entity and jurisdiction. As of June 30, 2026, the Company recorded $130,573 of income tax payable associated with such jurisdictional tax obligations and timing differences. The Company’s effective tax rate for interim periods differs from the applicable statutory tax rate primarily due to valuation allowance considerations, foreign rate differentials, noncontrolling interest allocations and research and development tax credits. |